Correlation Between Ping An and Phreesia
Can any of the company-specific risk be diversified away by investing in both Ping An and Phreesia at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ping An and Phreesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ping An Healthcare and Phreesia, you can compare the effects of market volatilities on Ping An and Phreesia and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ping An with a short position of Phreesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Phreesia.
Diversification Opportunities for Ping An and Phreesia
Excellent diversification
The 3 months correlation between Ping and Phreesia is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Healthcare and Phreesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phreesia and Ping An is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ping An Healthcare are associated (or correlated) with Phreesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phreesia has no effect on the direction of Ping An i.e., Ping An and Phreesia go up and down completely randomly.
Pair Corralation between Ping An and Phreesia
Assuming the 90 days horizon Ping An Healthcare is expected to under-perform the Phreesia. In addition to that, Ping An is 4.01 times more volatile than Phreesia. It trades about -0.17 of its total potential returns per unit of risk. Phreesia is currently generating about 0.38 per unit of volatility. If you would invest 1,750 in Phreesia on September 21, 2024 and sell it today you would earn a total of 550.00 from holding Phreesia or generate 31.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ping An Healthcare vs. Phreesia
Performance |
| Timeline |
| Ping An Healthcare |
| Phreesia |
Ping An and Phreesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Phreesia
The main advantage of trading using opposite Ping An and Phreesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Phreesia can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Phreesia will offset losses from the drop in Phreesia's long position.| Ping An vs. New Residential Investment | Ping An vs. Cogent Communications Holdings | Ping An vs. Gamma Communications plc | Ping An vs. EAT WELL INVESTMENT |
| Phreesia vs. ELMOS SEMICONDUCTOR | Phreesia vs. ARROW ELECTRONICS | Phreesia vs. TT Electronics PLC | Phreesia vs. KIMBALL ELECTRONICS |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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